R&D Eligibility Assessments

Adequately assessing a potential R&D claim at the beginning is one of the most important parts of the R&D claim process.

In Australia, there are two main R&D Tax Offsets available to companies:

A 43.5% refundable tax offset (equivalent to a 150% deduction) to eligible entities with an aggregated turnover less than $20 million per annum.

A 38.5% non-refundable tax offset (equivalent to 133% deduction) to eligible entities with an aggregated turnover greater than $20 million per annum.

What can I claim?

R&D activities need to meet certain legislative requirements for them to be deemed eligible ‘core’ activities by AusIndustry. The basic 3 requirements of a ‘core’ activity are illustrated in the below flowchart.

How much can I get?

No Claim

38.5% R&D Tax Offset

43.5% R&D Tax Offset

Assessable Income

$200

$200

$200

Deduction/ R&D Spend

($100)

($100)

($100)

Deductions Claimed/ Forfeited

$100

—

—

Taxable Income

$100

$200

$200

Gross Tax (30%)

(30%)

(30%)

(30%)

R&D Tax Credit

—

$38.50

$43.50

Net Tax Payable

($30)

($30)

($30)

Benefit yield of R&D Spend

8.5%

13.5%

Calculate your Benefit

Industry Specific Audit Issues

AusIndustry undertakes periodic reviews of R&D activities and the documentation used to substantiate those activities. The below industry specific checklists contain some of the information AusIndustry may review or request in the event an activity assessment is undertaken.

News & Research

With a federal election due over the coming months, the opposition labor party have made some announcements with respect to their policy on the R&D Tax incentive. The original R&D tax incentive legislation was enacted whilst the labor was in […]

Conducting R&D activities generates new knowledge that can benefit the nation’s economy. In a recent AusIndustry information bulletin, it was mentioned that one of the main aims of the R&D Tax Incentive is to encourage Australian businesses to undertake research […]

With a federal election due over the coming months, the opposition labor party have made some announcements with respect to their policy on the R&D Tax incentive. The original R&D tax incentive legislation was enacted whilst the labor was in […]

Conducting R&D activities generates new knowledge that can benefit the nation’s economy. In a recent AusIndustry information bulletin, it was mentioned that one of the main aims of the R&D Tax Incentive is to encourage Australian businesses to undertake research […]